Workers’ compensation insurance laws and requirements for employers vary from state to state, but private employers can generally choose whether to carry workers' compensation insurance coverage. A workers' compensation insurance policy provides lost wages and medical benefits to employees injured on the job—and death benefits for the spouse and dependents (children) of a worker who dies in a work-related accident.

Under workers’ compensation laws in many states employers who subscribe to workers’ compensation insurance receive a significant legal protection—they cannot be sued by an injured employee (or the estate of a deceased employee) unless the employer was grossly negligent (more negligent than simple, ordinary negligence).

In other words, if an employer has workers’ compensation insurance, that is usually the exclusive remedy for an injured employee (known as the exclusive remedy provision in the statute), and the insurance coverage bars an injured employee from suing the employer (known as the workers’ compensation bar).

An employer who does not purchase or subscribe to workers’ compensation insurance is known as a nonsubscriber. Workers’ compensation laws are usually located in a state’s statutes.

In Florida, workers' compensation insurance is mandatory for employers in most industries. Employers in the construction industry must have workers' compensation insurance if they have one or more employees, including the owner. Non-construction businesses must have workers' compensation insurance if they have four or more employees, full-time or part-time. Agricultural employers need to carry workers' compensation insurance if they have six regular employees and/or twelve seasonal employees who work more than 30 days during a season but no more than a total of 45 days in a calendar year. Workers' compensation insurance provides medical benefits, lost wages, and death benefits to employees who suffer work-related injuries or illnesses. In Florida, the workers' compensation system is the exclusive remedy for injured workers, meaning they generally cannot sue their employers for work-related injuries if the employer has the proper workers' compensation insurance coverage. However, there are exceptions where an employee might be able to sue outside of the workers' compensation system, such as in cases of intentional harm or gross negligence by the employer.